Piaggio 2007 Core Profit Up As It Grows In Asia
Italy’s Piaggio, maker of the Vespa scooter, reported a 10.8 percent rise in 2007 core profit on slightly higher sales, as it expanded in Asia where demand for two-wheelers is strong.
“(There was) growth in all lines of business over the year,” it said in a statement on Friday.
Piaggio & C SpA, controlled by holding company IMMSI, said its board had proposed a dividend of 0.06 euro a share, double the payout last year.
At 1524 GMT, Piaggio shares followed the market lower, trading down 3 percent at 1.66 euros in Milan, a record low.
Core profit — or earnings before interest, tax, depreciation and amortisation (EBITDA) — totalled 226.1 million euros ($348.4 million), leading to a margin of 13.4 percent against 12.7 percent in 2006.
Net sales rose 5.3 percent to 1.69 billion euros.
Units sold reached 708,500 units, up 4.1 percent. Sales of the Vespa, Piaggio’s most famous brand, rose 17.1 percent to 117,000 units.
Faced with stagnant demand in its home market, Piaggio is expanding in emerging markets such as China, India and Vietnam.
Among the various scooters, motorcycles and three- and four-wheel vehicles made by Piaggio, new models brought to market last year included the Aprilia 750cc and 850cc.
“Management (will be) taking action to boost three/four-wheel commercial vehicle sales in India and re-launch the three/four-wheel commercial vehicle business in Europe,” it said.
The push is part of its aim to get a compound annual growth rate in sales of nearly 7 percent — excluding a joint venture in China — in the coming years.
This article was taken from: guardian.co.uk